Pharmas saw small profits last year

Although the pharmaceutical industry in Bangladesh saw growth last year, there was a significant decline in profit margins due to rising raw material prices in the global market, according to industry people.

Besides, the devaluation of the taka against the US dollar also adversely impacted business.

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"On the one hand, the price of raw materials is increasing fast due to supply chain disruptions. On the other, currency devaluation has pushed up costs," said Nazmul Hassan, president of the Bangladesh Association of Pharmaceutical Industries (BAPI).

For example, the price of raw materials that previously cost Tk 85 has jumped to Tk 110 amid the ongoing US dollar crisis, he added.

Hassan was speaking at the inaugural session of the three-day 14th Asia Pharma Expo 2023, organised by BAPI in collaboration with GPE EXPO Pvt Ltd at the International Convention City Bashundhara in Dhaka yesterday.

A total of 645 companies from 27 countries, including the US, China, England, Germany, Malaysia, India, Thailand, Italy, Japan, Switzerland, Taiwan and Ireland, are participating in the event.

The president of BAPI went on to say that one solution for local pharmaceutical companies would be to raise their product prices or request global suppliers to provide raw materials and equipment at lower rates.

He then said that just when the pharmaceutical industry had started recovering from the economic downturn caused by Covid-19, the ongoing Russia-Ukraine war contributed to the hike in raw material prices.

Meanwhile, the rising US dollar price, cost of electricity and fuel has also contributed to higher production costs.

Asked about the recent price hike of certain medication, he said the increase is not much considering the current cost of production.

But despite these tough times, the industry grew by more than 12 per cent last year, Hassan added.

Major General Mohammad Yousuf, director general of the Directorate General of Drug Administration, said the pharma sector is one of the fastest growing industrial sectors of the country.

"Our manufacturers are now exporting world-class medicine to around 157 countries at very affordable prices," he added.

Yousuf then pointed out that many of the export destinations, such as the US, EU, UK, Australia and Japan, have very strict regulatory measures when it comes to medical imports, indicating the quality of locally made products.

Currently, around 200 companies in the country are producing medication following WHO and CGMP guidelines.

Yousuf went on to say that the API Industrial Park in Gazaria upazila of Munshiganj was a major milestone for the local pharmaceutical sector in its bid to boost large-scale production and export.

At present, Bangladesh annually imports more than $1 billion worth of active pharmaceutical ingredients (APIs).

However, this will reduce significantly once full-scale operations begin at the API Industrial Park, he added.

Participants of the 14th Asia Pharma Expo 2023 are displaying the newest pharmaceutical processing and packaging equipment, biotech lab equipment, API manufacturing processes and machinery, medical formulations and contract manufacturing mercenaries.

Through the expo, domestic and foreign businesspeople will get to know the details of various modern technology, equipment and raw materials related to the pharmaceutical industry, said SM Shafiuzzaman, secretary general of BAPI.

Paresh Jhurmarvala, founder and CEO of GPE EXPO, and Abdul Muktadir, chairman and managing director of the company, also spoke at the event.